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Ross Stores, Inc. (NAS:ROST)
EV/EBITDA
9.27 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Ross Stores, Inc.'s enterprise value is $14,408 Mil. Ross Stores, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $1,550 Mil. Therefore, Ross Stores, Inc.'s EV/EBITDA ratio for today is 9.27.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Ross Stores, Inc.'s stock price is $68.99. Ross Stores, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $3.87. Therefore, Ross Stores, Inc.'s P/E Ratio for today is 17.50.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Ross Stores, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=14407.578/1549.674
=9.30

Ross Stores, Inc.'s current Enterprise Value is $14,408 Mil.
Ross Stores, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 427.861 (Apr. 2013 ) + 396.434 (Jul. 2013 ) + 320.585 (Oct. 2013 ) + 404.794 (Jan. 2014 ) = $1,550 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Ross Stores, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=68.99/3.872
=17.82

Ross Stores, Inc.'s share price for today is $68.99.
Ross Stores, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 1.07 (Apr. 2013 ) + 0.98 (Jul. 2013 ) + 0.8 (Oct. 2013 ) + 1.022 (Jan. 2014 ) = $3.87.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Ross Stores, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebitda 10.949.028.606.765.585.666.569.038.700.00

Ross Stores, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 8.219.0310.4210.649.468.709.299.1410.500.00
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